Labor productivity is best defined as:

Question

Quizplus · Accepted Answer

Labor productivity is defined as the amount of output (real GDP) produced per unit of labor input (number of worker hours). Therefore, the correct formula would be real GDP divided by the number of worker hours. Choice A and C refer to unit labor costs and labor costs respectively, which are not direct measures of productivity. Choice B refers to nominal GDP, which is not adjusted for inflation and therefore may not reflect changes in productivity over time.

Labor Productivity Is Best Defined As